I recently traded my car in for a replacement vehicle. The trader we dealt with was very professional and being in the trade myself, but this time on the other side of the fence, was something my wife and I really respected.

We visited initally to view the potential car, and he had a brief look at the px, agreed a deal I then came back in my px which he saw again. I was trying to sell the px myself to make life easier but after I had been messed about said I would trade it in. On the day of collection the px was dropped in, the trader drove the car and commented on how nicely it drove and my wife drove away. 5 hours later I have the trader on the phone telling me the car has a major mechinical fault now that it is cold (severe engine tapping apparently) and that he wants to reverse the deal. I wasn't aware of any fault prior to trading the car in otherwise I would have mentioned it. As previously mentioned I work in the trade running a franchise main dealership so I know how many tricks people use to hide things so I didn't want to be tarred with the same brush.

My wife loves the new car, and says we won't be taking the old one back - she feels he might have done something to it. I have asked if there is another way to settle this and he has said if I pay him another £600 he will accept it all as it is. His order form has no comments about vehicle roadworthyness, just current mot, no finance, and that I have title to it. He has signed it as balance paid too. From what I can see under law, as in this case I am now the customer, the trader has to prove that the fault was present prior to trading in not me otherwise. I am happy to make a gesture of goodwill to appease the situation but feel he is asking too much at £600 as the car was only £1595 to begin with and I have already paid him £300.

I know legally I can tell him that there is no case to answer and he has not completed due diligance. However I do feel sorry for the guy, having been put in a similar situtation by customers in the past I want to help him. Most people would tell him to get lost but at the end of the day he only trying to earn a living.

Question really - am I right in my thoughts, can I make him a gesture without predudice as essentially there is no case to answer as all the paperwork is signed and we own the car. I know from my own experiance how difficult this trade is and want to be fair to the man. any response would be appreciated.